UP leads in direct selling in the north

Population density, per capita income, relationship building and the desire to enterprise are some of the key factors which ensure a successful journey in the field of direct selling industry.

These were the views shared by Anukul Agrawal, chairman - Indian Direct Selling Association (IDSA) and executive director, Modicare, at a press conference in Lucknow, yesterday.

"The north zone contributes about 30 per cent of the total direct selling market in India, out of which Uttar Pradesh takes the lion's share. The state being densely populated and equipped with ample workforce, direct selling is apt to prosper in the region," Agrawal told Business Standard.

With a view to ensuring transparency in the industry and help the sector grow in channelised manner, IDSA is in talks with the Government to outline and devise legislation to identify direct selling as a legitimate distribution and marketing model.

"Our main objective is to get a differentiation from the pyramid sales companies, to prevent the misuse of multi level marketing and guarantee consumer protection. We are in talks with the Ministry of Consumer Affairs, and hope for a positive outcome," added Agrawal.

With the current turnover of Rs. 2, 215 crore annually, the association projects the direct selling market in the country to grow by 260% in the coming three years and achieve the vision of Rs. 8, 000 crore annual turnover by 2010.

Direct selling is a channel of distributing products and services directly to the consumers.

Formed in 1996, IDSA is the Indian counterpart of the Washington based 'World Federation of Direct Selling Association' (WFDSA), which regulates, strengthens and promotes direct selling in the country.

"The Indian direct selling industry has been witnessing a consistent growth over the years. There are around 1.3 million direct sellers in the country. To achieve the real potential of the industry we urge the government to recognize our status. This will benefit both the consumers as well as the selling companies," added Agrawal.

Presently having 16 companies as its members, the association offers a range of 237 products in the areas of homecare, beauty, personal care, kitchenware, nutrition and educational items as well.

"The key to success in multi level marketing is not as how many people you engage but how much you are able to sell," Agrawal said.